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An employee stock ownership plan (ESOP) is an employee benefit plan that provides a company’s workers with an ownership interest in the company. The employer allocates a certain number of shares of the company to each eligible employee; shares are allotted based on pay scale or some other similar form of distribution. ESOP companies outperform their peers and employees acquire substantially more assets over time than employees in non-ESOP companies. ESOPs are flexible instruments that can be used to buy out shares gradually or all at once. Attendees at this session will learn how ESOPs work and can be used as a tool for owners of privately held
companies to provide for tax-favored transition, what the rules for ESOPs are, and how to determine if a company is a god candidate.
Key Learning Objectives- When is an ESOP to right tool for business succession?
- What are the rules for ESOP participation?
- How are shares in an ESOP valued?
- What are the tax benefits of an ESOP?
- What are the costs and risks of an ESOP?
- Do ESOPs help company performance?
- How are ESOPs governed?
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 | Corey Rosen
Founder - National Center for Employee Ownership (NCEO)
Mr. Rosen served as a professional staff member in the U.S. Senate, where he helped draft legislation on employee ownership plans. Mr. Rosen is the co-author of Equity: Why Employee Ownership is Good for Business (Harvard Business School Press, 2005). He is a graduate of Cornell University. | |
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